Taking out mortgage for elderly parents

mark100267

Hi
I was looking for some basic financial advice. To make the story short, my in laws both in their 80s  need to buy a bungalow and I have found one close by where I live. The issue is that the cost of around £185k and after selling their old house they have £130k. Neither are in great health and my farther in law is currently in a home and so the need to find accomadation is pressing
We don't currently have a mortgage so I was thinking of taking out a small mortgage against our house (value circa £350k) to cover the difference. Say £60k. We would put something towards this on a monthly basis, say £100 month and the in laws pay the balance to me. Unltimately I would have the debt.
My question is what is the best way to do this and possible consequences if one or both pass away. Or if my FIL passes away and my mother in law needs to go into a home. Could I be left with the debt and my MIL forced to use the equity in the house (which would then be all of it) to pay for care?
I'm sure there is a smart way to do this. By the way there are 2 other siblings who are supportive of the idea but unable to help financially
Thanks
Mark

MovingForwards

The smart way to do it is raise the entire cost on your house, then do a private mortgage with the in-laws (it's like a normal mortgage, registered on the title deeds etc), they pay you money each month towards their mortgage and their bungalow is 'safe' as they won't get the mortgage cleared quickly. 

Property sells in due course, you get the remaining mortgage back to clear yours, the estate gets anything over and above that.

Only issues are:
-- if the property drops in price, they will be in negative equity, 
-- you split with your partner and all assets are divided,
-- you or your partner go bankrupt the bungalow and your home are at risk.